Traffic Congestion and Accident Externality: A Japan-U.S. Comparison

Kuniyoshi Saito, Kato Takaaki () and Shimane Tetsuya ()
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Kato Takaaki: University of Kitakyushu
Shimane Tetsuya: Tokyo Institute of Technology

The B.E. Journal of Economic Analysis & Policy, 2010, vol. 10, issue 1, 31

Abstract: We measure the accident externality from driving in the spirit of Edlin and Karaca-Mandic (2006). We collect data that parallel those used in Edlin and Karaca-Mandic and apply their empirical method to gain further insights about the accident externality. Consistent with Edlin and Karaca-Mandic, we find larger external costs for higher density roads, although the sizes largely depend on the variable definition and the model specification. One intriguing result is that per-vehicle external costs are considerably smaller in Japan than those in the U.S. In Kyoto, for example, an additional driver increases accident costs for other drivers by $248--$802, while it is $1,725--$2,432 in California where the traffic density is approximately the same. However, on a per-mile basis, much closer externalities are obtained. This finding indicates that the large externality in high-density roads underscored in Edlin and Karaca-Mandic is partly attributed to the fact that U.S. drivers drive longer distances, comparatively speaking.

Keywords: accident externality; traffic congestion; auto insurance; Pigouvian tax (search for similar items in EconPapers)
Date: 2010
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DOI: 10.2202/1935-1682.2057

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